TCI Chpt. 11-12 Flashcards
Eminent domain
The power of the government to take an individual property for public use if the owner is fairly compensated
Takings clause
A clause of the Fifth Amendment to the Constitution stating that the government must pay private owners when their property is taken for public use under the power of eminent domain
Regulatory agency
A unit of government created to set and enforce standards for a particular industry or area of economic activity
Price-fixing
An legal, anticompetitive practice in which two or more firms agreed to set a common price for a good or service
Bid rigging
An illegal, anticompetitive practice in which two or more firms agree in advance which one will submit the lowest bid for a contract offered through a competitive bidding process
Market division
On illegal, anti-competitive practice in which two or more firms agreed to divide a market among themselves, selling only to certain customers or in certain geographic areas
Merger
The combining of two or more separately owned firms into a single firm
Deregulation
The process of removing government restrictions on firms in order to promote competition or encourage economic activity
Public provision
The supply of a good or service by the government
Voucher
A coupon used to purchase a specific good or service
Market-based policies
A policy approach, often applied to environmental policy, the relies on market incentives, rather than regulation, to influence behavior
Corrective tax
A tax on producers that is designed to reduce negative externalities, such as pollution
Cap And trade
A policy that limits the amount of pollution a firm may legally emit each year but allows firms to trade with each other to obtain additional pollution permits
Pollution permits
A government license, issued under And trade system, that allows a producer to emit a certain amount of pollution
Common resource
A resource that everyone has access to and can be easily overused or destroyed
Tragedy
A circumstance in which a shared resource is overused or destroyed because users take no responsibility for its preservation
Toll
A fee for the use of the common facility, such as a bridge or highway
Quota
The maximum amount of the resources that a person is allowed to use or consume in a given period of time
Privatize
To convert a publicly owned resource or institution to private ownership
Government failure
An inefficient allocation of resources caused by government intervention in the economy
Log rolling
A practice in which lawmakers agree to vote for each other’s legislation
Economic stimulus
A policy or action designed to promote business activity and stimulate economic growth
Quintiles
Any one of the five groups of the population that is been divided into fifths for the purpose of data analysis
Poverty rate
The percentage of the population that is a family income below a government define threshold, or poverty line
Poverty threshold
The estimated minimum income needed to support a family
Economic mobility
The ability of people to raise the standards of living and improve the economic status
Income redistribution
A policy designed to reduce income inequality by taking money from the rich and distributing it to the poor
In kind transfers
A government benefit in the form of goods or vouchers, such as food stamps and public housing
Earned income tax credit
A tax reduction given to low-wage workers when they filed your federal income tax forms
Unemployment insurance
A government program providing limited cash payments to workers who lose their jobs
Means tested programs
A government benefit that is tied to family income so that benefits are reduced as income rises
Regulations
The establishment, by the government, of rules aimed at influencing the behavior of firms and individuals
